If you add 30 minutes on to every MEL-SYD (and v.v) flight for the day, the utilisation for the one airframe drops by about one return flight. That's a lot of seats the airline can't sell. And multiple that by other trunk routes.
The airfare I gave is a typical example. It's pretty much across the board. I am not seeing airfares rise in Europe for cheap leisure travel. I am also not seeing arilines dropping like flies? The 105 to 102 might be a 'on paper' drop in capacity, but not one in terms of revenue. The airline can only sell 100 seats on a 100 seat plane. The 2, 3, or 5 pax that don't get to fly all have to have their fare refunded and or, taxis, meals and hotels covered.
no, if you add 30 mins to scheduled transit time, you can shorten the turn around time.
eg. say a route should be 2 hours, but airlines say it's 2.5 hours. Instead of 50 min turnaround, they could then say 20 min turn, so no aircraft flying time is lost.
Airlines that have gone belly up recently
MONARCH
FLYBE
PRIMERA
WOW
+ in Asia JET AIRWAYS which think were roughly about the size of Virgin Australia
to name a few
TUI & THOMAS COOK are both in trouble & look like being sold off in bits.
Why ? Few reasons, Brexit for 1, economy 2, too much capacity etc.
The no show factor, could mean some passengers get a later flight or just don't use their ticket. The point is at peak times, the airlines want their flights to be 100% full. If they only take 100 bookings for 100 seats & 5% no shows & no standby passengers, then the revenue for those 5 seats is lost forever, so airlines have to try & make up for this loss, but putting up some fares, or eg. getting rid of some of the cheapest fares.
At present, when 101 passengers turn up for 100 seats, many airlines ask for volunteers & offer them frequent flyer points or airline credit vouchers or upgrades on a later flight, anything to avoid paying out for hotels etc.